Correlation Between Good Natured and Amcor PLC

Can any of the company-specific risk be diversified away by investing in both Good Natured and Amcor PLC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Good Natured and Amcor PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between good natured Products and Amcor PLC, you can compare the effects of market volatilities on Good Natured and Amcor PLC and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Good Natured with a short position of Amcor PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Natured and Amcor PLC.

Diversification Opportunities for Good Natured and Amcor PLC

0.07

Correlation Coefficient

Good Natured  Amcor PLC

Significant diversification

The 3 months correlation between Good and Amcor is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding good natured Products and Amcor PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor PLC and Good Natured is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on good natured Products are associated (or correlated) with Amcor PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor PLC has no effect on the direction of Good Natured i.e., Good Natured and Amcor PLC go up and down completely randomly.

Pair Corralation between Good Natured and Amcor PLC

If you would invest  0.54  in good natured Products on September 24, 2024 and sell it today you would earn a total of  0.00  from holding good natured Products or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	10.0%
Values	Daily Returns

good natured Products  vs.  Amcor PLC

good natured Products

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days good natured Products has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly conflicting basic indicators, Good Natured reported solid returns over the last few months and may actually be approaching a breakup point.

Amcor PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amcor PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Good Natured and Amcor PLC

The main advantage of trading using opposite Good Natured and Amcor PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Good Natured position performs unexpectedly, Amcor PLC can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amcor PLC will offset losses from the drop in Amcor PLC's long position.

The idea behind good natured Products and Amcor PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.